CEO Compensation Strategy - Companies often benchmark CEO compensation against peers, aiming for a specific percentile, such as the 75th percentile [1] - For example, a CEO at the 75th percentile might receive $20 million annually [2] - The report suggests that traditional peer-based compensation may not be effective for CEOs with substantial personal net worth [2][3] - The report advocates for aligning CEO compensation with their net worth rather than solely relying on peer comparisons [3] - The report highlights the use of Performance Share Units (PSUs) as a compensation tool [3] Alternative Compensation Models - The report suggests that for individuals with significant net worth, compensation should be creatively structured [2] - The report uses Elon Musk as an example, suggesting that a standard CEO salary of $29 million would be insignificant to someone of his wealth [3]
CEO Comps are Broken
20VC with Harry Stebbings·2025-08-08 05:00